Category: Paragraph 2 (Eighth Schedule) – Application

Paragraph 2

 

  1. Item (1)(b) substituted by section 64 of Act 74 of 2002.

 

  1. Subparagraph (1) amended by section 91 of Act 45 of 2003 and section 52 of Act 32 of 2004.

 

  1. Item (2)(b) substituted by section 93 of Act 7 of 2010 effective on 1 January 2011.

 

  1. Subparagraph (2) substituted by section 25 of Act 19 of 2001, section 66 of Act 60 of 2001 and section 64 of Act 31 of 2005.

Paragraph 2 (Eighth Schedule) – Application

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2.  Application

(1)     Subject to paragraph 97, this Schedule applies to the disposal on or after valuation date of –

(a)     any asset of a resident; and

(b)     the following assets of a person who is not a resident, namely-

(i)      immovable property situated in the Republic held by that person or any interest or right of whatever nature of that person to or in immovable property situated in the Republic including rights to variable or fixed payments as consideration for the working of, or the right to work mineral deposits, sources and other natural resources; or

[Subitem (i) substituted by section 102 of Act 25 of 2015 effective on 1 January 2016] 

(ii)     any asset effectively connected with a permanent establishment of that person in the Republic.

[Subitem (ii) substituted by section 102 of Act 25 of 2015 effective on 1 January 2016] 

(2)     For purposes of subparagraph (1)(b)(i), an interest in immovable property situated in the Republic includes any equity shares held by a person in a company or ownership or the right to ownership of a person in any other entity or a vested interest of a person in any assets of any trust, if –

(a)     80 per cent or more of the market value of those equity shares, ownership or right to ownership or vested interest, as the case may be, at the time of disposal thereof is attributable directly or indirectly to immovable property situated in the Republic or any interest or right of whatever nature to or in immovable property situated in the Republic including rights to variable or fixed payments as consideration for the working of, or the right to work mineral deposits, sources and other natural resources in the Republic; and

[Item (a) substituted by section 74 of Act 23 of 2018 and by section 45 of Act 23 of 2020]

(b)     in the case of a company or other entity, that person (whether alone or together with any connected person in relation to that person), directly or indirectly, holds at least 20 per cent of the equity shares in that company or ownership or right to ownership of that other entity.